Capchase closes $125m Series A round

Capchase, which is designed for recurring revenue companies, has closed its Series A on a colossal $125m, as it looks to expand operations in the UK and Spain.

QED Investors, a FinTech-focused investment firm, served as the lead investor, with commitments coming from previous backers Bling Capital, ScifiVC and Caffeinated Capital. Several unnamed angel investors also backed the round.

The funds were comprised of a mixture of debt and equity.

Capchase was founded in 2020, with the goal to help high tech companies access capital to fund their growth.

With the support of the fresh investment, the company hopes to improve its core products and release new features.

The platform helps businesses unlock cash tied up in future predictable revenue payments. By advancing future revenues, companies can invest more into growth without depleting cash reserves, it claims. Companies typically use this early access to capital to support customer acquisition, hire talent, acquiring other companies, consolidating liabilities and working capital.

Capchase claims the average growth rate of its clients is more than 50%. The FinTech has issued more than $390m in financing.

The FinTech, which has over 400 companies using its platform, hopes to grow by 400% over the next six months. This growth will include an expansion in the UK and Spain.

QED Investors principal Camila Saruhashi said, “We had met multiple companies in the space, but we were by far most impressed by Capchase and what they had built.

“Their programmatic financing product is unique in the market, allowing companies to put their funding needs on autopilot and focus on growth. Tech companies that work with Capchase grow faster and Capchase channel partners increase revenue per user by more than 50 percent.”

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